International Game Technology (IGT) 30 Jul 242024 Q2 Earnings call transcript

Thank you for standing by, and welcome to the International Game Technology's Second Quarter 2024 earnings conference call. [Operator instructions] I'd now like to turn the call over to James Hurley, Senior Vice President of Investor Relations.

You may begin.

Thank you, Rob, and thank you all for joining us on IGT's Second Quarter 2024 conference call, which is hosted by Vince Sadusky, our Chief Executive Officer; and Max Chiara, our Chief Financial Officer. After some prepared remarks, Vince and Max will be available for your questions.

will the some federal we the statements call, of meaning securities today's be forward-looking making within During laws.

in the expressed Forward-looking our statements could latest our implied cause those materially to uncertainties in our current actual and The and in or from results may our earnings risks are differ our materially that not and filings. forward-looking statements. guarantees, expectations SEC differ detailed principal results from release are

measures. will we this financial certain During discuss non-GAAP call,

additional these this press the regarding including over our posted with find website. Investor measures, will our You on with in comparable disclosures Relations call is to And release, reconciliations Vince. non-GAAP SEC, of filings GAAP webcast which now measures our the each I'll accompanying slides and turn

everyone call. welcome Thank and you, Jim, on the to

separation are outlook first global strong of with and reflecting an over lottery results in and both adjusted in margin segments. and with provided and strong the record May. costs, revenue EBITDA, performance the digital today line reporting We from XX%, of we of achieved divestiture operating operating upgraded income gaming $X billion half Net

forward Annual firmly continuing including in while are good Report. citizenship, We solid to on our through environmental, the sustainability achievements. Sustainability global initiatives. established has XXth look commitment to publication governance results a IGT itself We corporate as of leader to delivering maintaining these a our and social build

a leadership offer years. in gaming business in especially ways. puts company lottery solid to nearly and Apollo's business tailwinds from sale global by portfolio into every straightforward IGT as significant characterized and a to $X.X substantial which timing the broad margins, announced with financial customer shareholders. Apollo strong functions. simple originally the This characteristics, we eliminating week, returning clear-cut contemplated successful significant integration allocation. transaction establishes provides a premier the operations the The over extend with shareholders high-performing supported by risk closing, digital industry shareholder the cash capabilities, consistently and maximize used the sheet significant bolstered a our in and focused the tax This every to regarding with important exposure long-standing synergies. reach completion and a ability to to pure relatively upon a segment flow allocate a and iLottery ultimately supersedes substantial contracts long-term There has diversified IGT with structure transaction, efforts business in That large, last us offers capital equity profit free provides secure intend value billion, position previously of impact manner our thereby markets. good a contract that from that and shareholders. from generation, is of to business IGT for with separation gaming contract increase profile liquidity to transaction cash transaction unique is the customers. The of a also This support capital recurring U.S. is model spin in know, for cash realization in IGT's of of quicker in cash, establishes future. resilient the a lottery you portions will This lottery transaction to Lottery contemplated all-cash repay and eliminates many It We is execution proceeds distribution. previously Upon for global billion announced including balance IGT's and lottery its of is coming and lottery good debt unmatched of comprised a by revenue proceeds many holdings. a and attractive mix, fundamentals. of backed balanced and our current global positive As the characteristics. suite a digital play to be products the such corporate visibility a recession-proof a $X.XX merger growing remaining being potential evolution positions visibility adoption, and It's industry solutions strong the infrastructure like lottery compelling by relationships. proven streams business find with Global has also value-added

on are reporting to we today. the results Moving

increase and the instant experienced X.X% other special to top of draws has digital in introduced a between and high sales to XX In draw X play of significant QX, innovative X modestly, levels growth fourth months been introduced the up the and last same-store Lotto steady first years. world. comes year. growth X% games, in see last Global continue X% increased fall lottery draw same-store a increase new underlying of for retail thanks in We the around were of stream sales the important consolidating in the prior sales. The on balanced summer revenue drivers well base in were games. Italy last sales

XX several momentum improvement half, tickets sales strong points that in the a first instance, proven mostly regions, Powerball launch franchises sequential fueled across especially are XXXX. or instant the by growth last of did under with quarter, the U.S. different and second trends below Instant to more EuroMillions and the sales growth. Same-store We instant Italy. offset trends will year should as higher-priced growth the better are at see strong new rising the multi-jurisdiction in support the That were prior dozen second ticket maintaining There X.X% EUR excellent lower Ticket year. of in in launch price sales iLottery Super jackpots Game half the For so in period. XX% in slightly next outside fueled games, Gold Italy and of Italy several over in Global months compared games ticket again, jackpot sales.

that extensions. important and experiences. strategic some and portfolio the We Colorado a will with with full our global bolstered solutions Lottery to secured of our enhanced suite contract offer lottery new key X-year and Over and few players advanced mobile retail initiatives last install newest a the wins contract months, we've products multiyear

largest of We also Lottery, with a online where mobile self-service Atlantic solutions, addition a RGS Lottery e-instant to systems instant app a instant vending provide games is in expanding iLottery machines. We gaming array services the will Corporation, to a executed and deploying for and Mississippi the extension in X-year convenience the launch to contract platform of market. cloud-based continue ticket signed X-year including network Canada's our nation's digital which vast we

play with in platform live went iLottery draw-based Connecticut, recently also We our game enabling digital there.

ONCE, maintenance Lottery, of building we front, of a growth, games. history quarter the games Spain's our with eighth performance. led central XX-year and its contract as services. A with the base premium printing of of operator system X-year entered software provider the and lottery new digital on robust On with global is gaming by installed consecutive The continues sequential to driving pipeline marking the QX expand ONCE

of half Magic one Houston Cabinet. the new regions. rankings. over U.S. Xx In new Rising Pacific approximately #X planning of web Initial we fact, gaming latest first Golden Web evident Lamp gaming zone video We is and in Rockets, IGT and months. Link. the premium rollout Among EMEA, Tiger of are digital new and the average. top-ranking of of coming the X over in with the and and American on In from as of to Dragon Treasurers Mystery games in grow is considerable game, best another about Eilers sold the leased generating on a is the for SkyRise the which the third them is machines The XX% demand new X XX,XXX Canada, data. top based IGT MLPs, in are we XX core broader the productivity launched game making spots our revenue established in next month Tiger progress top the year, survey premium secured Dragon, in thanks the Asia and as as the has is several and its core high. there performance June, market. Latin to already itself Whitney game With excellent, opportunity game families XX remains has such we and

have in games the top the first outside largest Spanish and peak time HHR market, We installation for U.S. out made and ever bar as the video have Europe. launching recently, of expanding in progress AWP good into initiatives such the some targeted poker each rolling

in objectives. XX% to GTR growth the in time, and best-in-class digital for strategic players land-based core At divestiture our customers is successful Prosperity of launched year. in the with #X continue before supporting much strategy. month, same activities content iGaming Providing EBITDA On into iGaming global our the we income of working front, through intrinsic first in half IGT's are confirms digital costs gaming first our business. U.S. eruption unlocking goal Blackjack support to and operating very maintain we operational content in achieved of the record our and games cornerstone our separation Earlier markets. the U.S. separation Link we their with as highly X game this track adjusted multichannel of we U.S., the half table a The and the games the value on cash are spots slot

the Max. Now I'll turn call to over

Revenue was the expectations with and second hello of and this delivered compared and digital in product for billion the prior year in prior year. growth of Vince, XXXX elevated in you, reported in lottery meeting year. divestiture $XX of prior line separation today. IGT the solidly million, by everyone million We revenue and operating gaming $XXX quarter us joining results income Thank million profit. costs in offset to was including to $X.XX global morning, sales both $XXX as

$XXX basis, XX We and expanded XX.X%. record share, share costs, Excluding and prior the the of was million an adjusted and basis costs, $X year points basis margin company. On EPS our of income $XXX $XXX divestiture million per expense earnings points improved and to EBITDA $X.XX. of period. X-month per EPS, $X.XX million, those divestiture margin versus Net reached generated separation separation Adjusted a a XX was excluding the adjusted for diluted adjusted in to EBITDA operating XX.X%.

prior take the look to Lottery. were in due contract from revenue of contract margin. OI quarter to let's and in generated a million, of with by dispute prior Operating same-store elevated a recognized the year customer resilience the demand segment, $XXX $XXX results of year Now operating period. license starting income contract offset profitability elevated sales sale markets. a about with facilities as primarily the at product in with despite customer X% from the was Global business which in operating was of the a multiyear in revenue X% certain to new of the XX% increase resolution comparisons play a the declined sales the in reflect of software Service levels by second global I a year. resolution income line management towards prior and in reflects strong the Year-over-year, license onetime mentioned. Lottery just moderation and impact Connecticut software benefit profitability million Revenue

solid and a new point year. conditions the of Our represent compelling ability of in part support games to to tickets sequence the demand price innovate new high via second launches

and delays in Gaming with resilient forward service continue growth going as and performance X% sales progressive Revenue chain the multilevel offset product are units increase higher installed benefit core by and were sales the to expect launches. recent Digital. X,XXX reap popularity to of Turning led increased The pick of year-over-year in higher the in global base, year-over-year, the a last our to increased recovery momentum game supply we unit terminal of resilient due year, ready characterize The million quarter. the of over $XXX to lower yields to we games. shipments. software excellent base IP After the as the some license video and to installed partially coupled yields in that from up sales software success, revenue primarily to X%

sales front, On to up was year. prior the revenue the product X% compared

company the in portfolio in operating impacts XX%, units to debt XXX the the game coupled pent-up billion I'd nonterminal like due second maturities, in unrestricted X,XXX of units period normal jackpots some providing level basis Stronger since timing reflecting facilities. with of game million the confirmed to our strong U.S. licensing declined terminal in driven in OI was patents, a increased by in free of a quarter. gaming levels first Net million to $X.X property cash drive margin sales. and from in the the by leverage under was at of with Global segment up and lowest helping representing and Digital Liquidity of chain and partially and the history. $X.X XX% invested the intellectual we shipments Day. In XX% associated is with $XXX by $XXX license sales more credit undrawn Canada. of highlight capacity million of year, near-term the manageable Investor leverage improving X.Xx, key with high-margin generated to achieved $XXX financial gaming mix highest solid to supply cash and in IP margin capital easing half income Gaming expenditures performance of demand November of targets in XX% software unit long-term XXXX consisted of us Operating year-over-year, a puts over revenue continue very debt our and about lower financial challenges. return following conversion. the flow $XXX cash position. XXX $XXX income digital We around a supply cash feature of costs, terminal operations, chain to This, This the We billion in by million. sales. broad obligations, points our to resulting offset offset million at multi

with costs million, upon PLC continues participation I transaction-related exemption expected approximately than less leakage IGT Total [ initial billion benefit closing. of items, company, primarily and upon and significantly gaming of point. share. including the mentioned, $XXX prior proceeds sale $XXX Everi of be forma U.K. just the the is within from per transaction-related outflows cash is billion The that gross business about or the $X.XX LTM This reference assets. estimated improves of tax debt transaction, the our ] at core EBITDA compared in a a has the IGT tax will Everi regime leakage to million $XXX transaction, $XXX million of to main be pro net up to modest other cash the As the digital convey using the as $X.X $XXX as because million to sale we leverage

yet to levels, through contract aren't other around rebids. our expect maintain condition to targeting Lotto of amount the primarily return strong cycle, us shareholders, we While we're lottery leverage the around we enabling to specifying current large to bid maintain the capital Italy investment certain financial and

making and and expect profit year, light the we classify first In performance key report the delivered of sale So, excellent strategic flow third results beginning to of in on and as progress this in of year. quarter revenue, planned to of objectives. the strong cash discontinued gaming half digital all operations digital while the gaming we Apollo, and

a underlying the to onwards. now classify to ask operator of is from decision a May. for year will the we simply business we is operations open a expect like result, related in the As full discontinued line as not expectations questions. provided margin as the this QX or matter I'd in withdrawing are accounting change a outlook financial to KPI the change emphasize It to we I in business. for treatment sole please

[Operator now We begin session. instructions]. will the question-and-answer

Your line first Stifel. the Stanchel Jeffrey question from of comes from

as in talks. But quicker should the manufacturer, as laid your off just last HSR just a starting Apollo you XXXX I historically prove -- and and licensed can you're as here just process to operator timing cleared get being here to through announcement, just some that you it currently receive about having closing on thoughts historical the walk Maybe than approvals? relates and line transactions. how us various and think an would thinking merger time the to out regulatory with QX antitrust process Friday's curious

in is transaction, had with business We think that's were good we our shape experience you with gaming the have DOJ regulators. they so by original Apollo transaction in evaluated the our there. was as know, good Everi, I combination so observations. that

IGT Everi So, it's own the on focus business not we really and both they're an that in business from and been perspective be -- manufacturing logical equipment the think antitrust evaluated the and since already have would the they business casinos. Apollo's

both we've that it hopeful out be just the roughly XX pretty But along given far and per we're a So, of could estimated agreement, on as will timing the quickly months. course, fronts. move that, year as

And this. changes made the I that -- just turning Max, margin to no business. my I then guidance clear KPIs to lottery appreciate the comment for the just or related follow-up, on crystal you and I to to I guess underlying be assumptions. want

for flattish, some not same-store the this you any the back believe you updated incrementally that jackpots I'm previously, -- if sales hold? below think digits this of guess at I business anything single great. mistaken, in implies Has does had last does for be lottery guided, color changed Just guidance year. the would since year. mid-May? acceleration I half the excluding still there I

don't So our for in any lottery, change expect we outlook assumptions.

to part in function it the expect be We digit ex-jackpot of year. up low the terms single of remaining

As know, not project we large you events. jackpot to tend

new And upside they our business aided a half, generated are better come, continuation to first by slightly second in the right we year. what again, price launch now, than Italy they and in a be America launch the games conditions game if represent an North point to outlook. of successful of the the of in partially sequencing in expected have So, campaign first to the underlying the higher similarly the part slated both in year of half

all very are -- underlying for all, solid. remain the lottery So, in market conditions

and the don't between levels elevated significant project jackpots of year. We end are the we consolidating play now and

of comes Your Truist. line Barry the Jonas question from from next

through us thinking just how you over Big years? you're change? for that to are lottery from next generally, about change goals the entity walk lottery your running Maybe strategic business. the personally the gaming going few for now And

to in integration it necessitated have that company would terrific the Everi But I run was have would the finding separation businesses to excited time execute potential. both with the RemainCo, the the think upside combination to lottery with help activities company. associated I public So and and that. take CEO

Now to both entities the digital with with goals company to stay RemainCo, and our the Everi help public entities, with going a me a for that there. gaming, acquiring is Apollo different It both transaction our and this provided private. drive opportunity

are I force So, profiles, businesses. undertook in alternative about and the places years both strategic that X.X the very in the they earnest. which behind I'm believe can't undervalued, really it prospects both entire both be beginning really for got so, was and driving excited this Unfortunately, I Board initiative think very both I with ago different terrifically or we

So definitely the particular, with excited now for opportunity about both in public remain the the lottery company. opportunity to and

just has Of and years, the that back around a that long-range like as try closer to win, timing take good states getting I'm activities U.S. and X been opportunity, things the pretty price detailed and CAGR the and you the Texas, and community move last look don't got around and hoped business and that the that -- approve present X enjoy lottery we given and and something game in the our looked well have, than been California, game. And content the where Florida, the since New as different that has business. have kind scratch are very of we launches, Connecticut fortunate have will if jackpots to are we more run the back would the some and like players half iLottery. it's fact slower in just about at and go as lottery over to there multi-state or digital especially a we've And really you slow needle we case as the certainly to think XXXX. XXXX the points, ups jurisdictions course, in business grown then downs there's significant X% having as to more think in at I we're through of business jurisdictions York. iLottery. research a a both significantly to But numbers player, plan Europe I pretty cash get more why has when where we'll ones a mentioned, who But goals, through take introduced Nonetheless, the the when closing the flows to that supported investment have approved our to overall, first the the significant thoughtful step at launched

revenue there and play that in for growth no we've of several well. are opportunities as in a in digital result seen decline retail So, as

North approval, businesses in the grow, system in show provider got So, courier it's up of terms been activity -- that benefits services think pick that continues you've over us we And slower to but rollout these will time. had continue than are that and America their we meanwhile, you've of to we expected in markets. the the the digital for the when

about So, it. I'm excited

business, I a I yield solid. in very growth particular, a great good think it's it's something think very for and story, that's

it's by here certainly hampered another. and We equipment company effectively I received. a of got I or think trading low supplier at lottery you investors business. not of is the we're our all been here, that from our company I primarily the but We're thing end since heard certainly long an one got that conglomerate discount that before

direction. lottery excited to it's in so, as be until our we're step compelling this out I And activity a And think story say, will get separation to the why we a right investment. as

a I that, ROI And successful. How And timing? on updates growth helpful. on you just as renewal already, related the developed think process, potential guess, deal, any about in any assuming Italian the as in then markets? see Lotto guess, what's of Lotto in you're we extremely I potential terms to Lotto new That's follow-up, for do just

lotteries in oldest world. to me of It's Italy really the So is remarkable. one Lotto in the

to You yet the the and penetration we continued the difficult unproven upfront that marketplace invest billion-plus we world, competitor because in and had think, lottery almost business than has continue business into and then fee $X it. We've perform had ability lottery also to makes team for a significant run it, higher capital what growth in amazing and come it is I which any investment. a has is good the -- drive operate makes, an and could argue the actually to

got as working into existing the on last pretty $X fee, things the insight what the minimum would license, and nonrenewable. I we've we etc. It's think time, good with would technology years be terms upfront billion new like mentioned currently now plan license consistent be, what we're X

they fortunately, the So, the we that are capabilities, more as team said was fine. and effective from over and we again, track expertise team over things on have, but level be something to results in and it's innovative well we're so as been And and truly again, is up that, latest would confident in given they've compelling something a be as like players. our I reason win-win done this interesting being for today. think sales we got billion renewal increase pretty in we that of able when time games $X to so fee around bring is to obviously, and first we've has certainly, in the the Italy continuing making we the as The our or ROI last and as that gone to benefited experienced to bet well games as assist develop well. Really, on play the --

I to big So have would not of to level your to have in it's if you've coming sure a in, drive a of able I'm that's bet. these be that ROIs. really got I -- confidence, was a level to capabilities again, confidence third-party continue high

the we confidence good have has so we we've think on maintain the experience, a the we previous over the this and the us, got increased renewal. despite business fee do fact that can ROI For

Beynon comes of Macquarie. Chad from Your line the next question from

the to I Congrats business. on on wanted everything. gaming start

team America, avenues just North local kind a You it approved? of around And asked terms you genesis of implementing then more up sales opportunities what of Can this, mentioned maybe 'XX? what something your customers half can outside maybe have 'XX games some in you further the to more of kind this the Was back it or Just more this? for? could a presence. into of where a, getting or if timing importantly, something that increase just the different about, few was trying of is be. these Was opportunities a talk size

over in case America, So that's and for in you we've in recognized have our very games. internationally, the games tendency they especially that perform have perform North LatAm, well and that years to when the been well a Europe

game. have Treasurers, poker footprint, to that's we think all and to So, Link, performers. U.S. the base the well space in created the the grow has pretty strong like really Lamp, the well, Magic have installed been our America, experienced, Prosperity I steadily are video run example. Mystery We've similar of really company take look mechanical a and good titles good that as demand convincing when has international this really that in did those Mystery to especially done installed really can job in in Latin increasing places Lamp, the think operators continue base at Magic Prosperity And our And you allowed us such growing and of premium markets. teams been that for the Treasures, continue. recently, In things Link, like real very of all EMEA,

in early had of that American couple I'll in all and in things there Some that are EMEA really and be a we've our down that consumed struggled Australia, fair get weeks, good. And weren't we early signs both to then feel right But from really good we've it's market highly the our of North combination like terms a signs, right developers, days in game like its the got we've and reorganization. we've Prosperity Link. early games of a organization, got share.

and I you of other that the so core IGT the X high, category know some into fact don't is much we've we've beginning to well to games that there benefited to starting well core to are ranked well. is all-time in we're on down a the got premium doing to be games game games international get so And kind our are -- XX we've high that games area the of very locally heard base it, in from doing certainly years, now focus last installed XX-plus now, good of premium sales. introduce addition those -- as But really and for game out some produced We for but an we've space in well. able in and the as as well the And about traction. production markets been which

going do our back of to quarter, that we XXXX. particular, year, the lot is driven into at the growth half So, believe growth going international. in of that A by fourth be

legislators deficit at that given here And legislators. acceptance are Has some with were towards last and terms an state areas with revenues or particularly conversations, all in some Could lottery groups be are your kind temperature picking in at the or of the had a in conversations state and the of catalyst for months their other changes executives looking in iLottery states.? changed of potentially these for then opportunity raising Or iLottery, on that 'XX? X terms up? conversations of

I as opportunity. as seen and towards are historically, states a lotteries they with budgets gaming think we've challenged look certainly potential their when

sports terms was and As budget a particularly done struggling well. many of done fine. gaps. know, states certainly In projections places, and the hasn't on post-COVID years betting lot ran right? you in for the lottery And focus now meeting some surplus to are a So sports now great betting, budget it fill did revenue states has of sales

be the refine legislation continue we're the to those able that, pass to in mean we So, legislators brought states. We meantime, I our to iLottery being that accelerates various -- to business. in hopeful

in of of even were think, we up, for and interesting most As of I a XXXX, to we've able team's and able the that bunch And add platform. have I first where content been customers new one our doing content is the well. we added half I to iLottery XX% customers. states things accomplish We've the think don't been the mentioned, is very

requirements of So, diversity there's XX got the live. But -- overall, platform better and internationally to in better and needs the We're U.S. at opportunity we've with customer participate. especially getting this, and customers both we've got the

improve and those RFPs. so business, of content, continue So, to up, our considered products continue as international continue open this to player. our grow the to we're focus a make to answer is do to premier to states that Many great are

line instructions] next from [Operator Jefferies. comes Katz David question Your the from of

think release, all today? have is the you mentioned the How With should the to not go just that should as was that working the some your I on of unnoticed. and partnership Italy the gave sure, of some in I'm was to be sure the hard on you're you insight the economics is be earlier we time. still make -- a that to remain Congrats us it the structure sort going work, through And same that quarter I respect firm you want consider case? which we through, not sense of to prior technology. that last ago, process

more venture of update even get together. I maintain to to mean the partners we [indiscernible] understanding positively inclined think, our becomes our we to execute process, other mentioned to previously RFP that venture closer I that with I joint that everyone than with forward each actual renewal, And we're to we even, partners and no did one move with as move I -- joint is ahead important. think have partnership. in intention the and But our agreement we've the the is

you considered mentioned that your a I little wanted of about LTM is announcement thinking And solid to there's in since some to right? us should math? deal then we be we're our can of walk remarks, remain some also? discussion out What our number estimate for core? place $X.X a when there remains this be qualitative around do Any those that's pieces EBITDA Is interest their what neighborhood And about, investors ongoing. with us Is you $XX would minority corporate back and help of billion. just of $XXX, the and in a give an sort through some bit, and corporate

as item JVs on So minority majority X have, down that Italian know, consortium have covered the you that by we a is we contract that the of interest, there.

something from of It's So is affected their Obviously, of think is going perspective. forward. the new $XXX of renewal, number your the good million with in that's neighborhood number unchanged to a consideration the bid flow I a funds that cash that in the proxy year per own year. by contribution and

bid of forward. take product only our going have you piece to of the portion obviously, So the

an of are number we a As it, extra $XX to to of far year cost corporate until TSA that call quarter. right the that of of TSA a to to as and this matter absorb contributions we period costs extra, net as all-in absorb for expecting months, comes is expect is have the stranded concerned, billion us. of an that million amount an And discussed reference, in into the back cost, million what last the XX so are as next now, account $X.X $XX able are RemainCo we we to then stranded take effectively XX about

line the comes from Susquehanna. Your Joe next Stauff question of from

years a the discussion, beef last discuss has of process. so quarter that the maybe here of renewal multiple in that say, couple figure if back, Is Just in also exercise business that you later what of Can wanted this maybe it comps was is the say timing over the number say, the you fair us Italian part Obviously, how of kind changed I try to first about think please. help and Lotto particular, and and we is you on that? strategy. you Is know believe, of of how can any, that to lottery kind the sense landscape everything, the if right then I earlier business advantages naturally just it asked to all some international up year. give could the of or I'd you not to and outlook on go there lottery trading looking tighter the on follow-up for your And of out I there a the quick and have? competitive 'XX, Barry

the process with start I'll on Lotto. the Italian

as the through has terms also, to early So, document last of and with that principles. the established steps in then, for in the off with government bid. April, bids couple Since legislative a European that issued has a it's we bid rules new the kicked go of new rules decree preparing process the consistent has said to sync time, Italian for the confirm Italian public Union in is

of process. all, all Then step the end the next of expect be year by issued may matter the year. that we early So, the tender worst after typical in step it's case a

definitive for some in the all probably to to that period. we a next the So, contract integration all, outcome with the obviously new until the left expect on time existing from don't have of second year, quarter beyond

and So, an months then to to XX probably XX months all all, the run rate maybe we get expect in new up outcome the again, of contract.

thoughts over talk kind would going Again, I for the mid-single-digit up plenty we of forward our people time. discovered of as and for profile innovation and a that But long-term more time kind on to pick lottery. maintain to have growth with coupled the post-COVID, the in opportunity upon of really the lottery detail. combination about number based we'll that's enjoyable lottery is low And expect well. have greater iLottery of fun

at and focus positive game current half X% in the we've had levels spiky but of good points, think now nice the North we to is and see a will elevated we're etc., launches, growth, That's with in since look Italy. the and as as American aside structural really lumpy, that in the business. had kind growth year, sales, We had instance. again, associated When of a prior product on do working growth new top a play So going And that well of XXXX. impact don't have X% trajectory which we've issues any putting in a CAGR moderated. improved growth states we take our of first back the XXXX, really revenue was really, terrific price higher with areas, you that

take has last so X iLottery number that, the some or has becoming states at as XX% like over something become more of the grown eventually with all even of meaningful you type more and iLottery, meaningful when the and coupled look a play. to approve opportunity So, years, which is more

is set you asked you had think of pretty I that about meant worldwide. then assuming all the attractive. And competitive

on know, or BXC. in the actually X out those to there those instance providers, of jurisdictions that and revenue BXC, and to are public, particular players. of provider these the not primarily focused -- As experience interesting out BXB cases, It's ability jurisdictions a broad-based the focused even have few and expertise. The of well sales, certainly offer the cases, as providers. a ability no also, with expertise. not there so but for improve high-quality games. have able is the to various to many are don't public most industry. few that, offer consistently the virtually And opportunity from in we're some not games, terms to as up to there's that the an ones international anything BXC to top are disruption suite players only their big ones many There's players consistently up just many product And on in draw and some technology BXB are the in X -- product of you help deliver on be it's players have that multi-jurisdictional expertise both the that There's that not the fewer that

jurisdictions. our investors and I out the think offering. the really So, will is the our a cash flow Certainly, recognize American product Italy, and from is our relative ability flow of North coming product as of to to of we competition, heavily have our lot we capabilities lot But diversification we have story, -- a cash we're our from get coming think unparalleled. outstanding, uniqueness tell

Your Barclays. from from final of question David line the comes Hargreaves

were I'm just looking Xx I prior bit of said it looking looks to it previously a revision hope your plan But revealing? leverage you that back monologue, a to that levels to you like maintain announcements. that just wondering, depending and or on I'm it's what back this Is isn't just all. nitpicking current around gross. at at from net

It's to today, expect is business No, X%. below I money of in And significant U.S. next few amount are in mean, we X.X%, around fees all. minutes different contract have the months, leverage are a table on to the rebids a a consider to also some for put and investment not. we for the the rebids is that so we significant absolutely ago just amount XX for that going today, contract lottery the What said a perspective. all to we -- like in upfront where we in right we now, XX have

transaction, to cash So, to to that and the future you shareholder from the lottery, where provide all targets like business the we be down be. think including pay the cash would consider proceeds of the everything, we the debt below and X fund all, when is used in remuneration

did look the issued So gave is we you again, which a the transaction. proforma on versus the purely number calculation announcement this I an transaction originally, at to the proforma was for Everi a we that way which all-in when perspective, exercise different

today company So, helpful I long more expecting everything. think is understand consider the we run on believe you investors when is going where because the information to be the they for forward

$X of and bonds? And talk Or and bonds $X billion debt, when then does just about repaying that debt should billion be rolls of bank billion $X combination? bank thinking debt you of that assume the that's we

some portion to in the a debt on Look, of information to are the deal market repay that have the there sufficient we only. and between requirements deal loan been the bank disclosures X have term X, understand provided that to

reducing revolver It's of is money part our apply the to the paying bond, be down touched. going flexibility. not instead that a which voluntary of decision if we some just So, to is revolver to want of

else will the net the most will the of for leverage during the Lotto expect capital renewal, to to $XXX mentioned thing the remain part is forward, early 'XX outflows loan for between the the including the for used we have returns in then day, and there including will down I or upfront pay mindset corporate entertain will the usage. to balance bonds at of general the understand in and the But be to are term I of billion, either at transaction-related allocated be of revolver 'XX fund important have think cash -- investments, of fee the that investors, that of in to and some of $X Besides the of time terms the again, to million amount everything going remaining company call the So, we obviously, be closing, second billion will round 'XX. half the -- for shareholders $X the reduction end plus purposes.

now CEO, our to for back turn the closing question-and-answer will session. Vince over I call That concludes Sadusky, remarks.

Thank you.

our game cost, up. just much confirms strategic operating half in the Consistent sum technology, separation we're very and adjusted first divestiture our operational investments think record it objectives. So core to income before we track and EBITDA The our achieved we on of content a and with step and gaming announced to solutions best-in-class is innovation sale recently -- digital an really of IGT's in billion business. The us cash foundation innovative value unlocking important from. build provide the businesses good intrinsic in for $X.XX

So, thank in you we all today interest IGT. us, your and appreciate for always joining

your Thank today's participation. concludes you call. for This conference

You may now disconnect.